Dividend Announcement Thread!

[Dividend Watcher]

(03-10-2016, 07:49 PM)kayboy Wrote: http://seekingalpha.com/news/3166410-gen...tal-target

Rumors abound.

I have  no interest in 3G or anyone else making a bid for the General. I like a lot of their products, they're making a lot of changes in their product mix to appeal to the "health nuts", and they've paid a dividend for over a hundred years and never reduced it. It's a reliable slow grower that just keeps plodding along and sends me money every quarter.

I don't need a wad of extra cash right now from a buyout bid. Where would I invest it? If you think GIS's P/E is high right now, look at the valuation and yield of the quality replacements right now; e.g., CL, HRL, MKC, SJM, CHD. Unilever & Nestle would be good replacements also but then you have to deal with currency fluctuations and, with Nestle, taxes whether in a tax sheltered account or not (AFAIK).

Looks like I got in around the same price range as you, kayboy, but my expectations when I opened a position in GIS was to grow old with it and pay the grocery bills. It's one of my few core companies that I wouldn't consider trading bar some catastrophe.

3G's done a nice job with Heinz and Kraft but both companies had gotten stodgy and couldn't change enough to get out of their own way. Kraft's CEO talked a good talk before the merger but couldn't seem to implement a lot of what he talked about. GIS, on the other hand, has actually made progress in changing the company's product line in reaction to the marketplace. I owned HNZ a long time ago and got out when I could see the results of their stagnation. Had KRFT in wife's portfolio and was becoming a little disillusioned when management couldn't seem to implement what they were touting at investor conferences so the merger and subsequent shakeup seems to be working with KHC. I suppose 3G could gut it internally with it's slash & burn mindset for a quick bounce in profits but I think that would throw them into disarray internally versus the planned transition they're executing on now.

I guess we'll see.